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Weakest 3 And 6 Month Auctions In 2010, Major Direct Bidder Presence Once Again
The just completed 3 Month and 6 Month Bill auctions were the weakest ones conducted so far in 2010. Out of 14 auctions conducted so far across both maturities this year, the 3 Month closed at the highest rate seen since December, at 0.175%, coupled with the lowest Bid To Cover over the same period, coming in at 3 month low of 3.6. The same is true for the 6 Month: the closing high rate of 0.265% was
the highest in 2010, combined with the weakest Bid To Cover YTD, at
3.63. Direct bidders once again came in to save the day.
The same is true for the 6 Month: the closing high rate of 0.265% was the highest in 2010, combined with the weakest Bid To Cover YTD, at 3.63.
The Direct takedown for the 3 Month was 11.5%, the strongest since March 1. The Direct bid size was massive at $11.17 billion resulting in a low Hit Ratio of just 27.4%. For the 6 Month, Direct take down was enourmous at 19.2%, double the yearly average of 8%. There were $12.9 billion in Direct Bids - the second largest Direct bid in the 6-month auction. The Hit Ratio was a substantial 41.6%.
Coupled with weak 4-Week auctions recently, and the Bond market is increasingly getting concerns about the short end.
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game over, Ben. all you managed to do was throw away the rest of credibility your country used to have while blowing two tril of money Americans never had on an all in experiment. time to start a war.
As negative as you try to put it, it still went better then it should have. No smoke here.
It went better until it gets worse than it should have been.
SILVER!!!!!!!!!!!!!!!!!!!!
Coupled with weak 4-Week auctions recently, and the Bond market is increasingly getting concerns about the short end.
What about the middle and long end? We could see an all out bond rout within hours.
Call in all your paper PM's for physical, NOW.
'nuf said.
i think the deck chairs would look much better painted white!
"Don't tell the band....just let the music play"
Widespread Panic
Clearly the economy is improving, look how that ship is pointing upwards , why even the rudder and propellers are no longer underwater.
And look at how BUSY everyone is. It's 100% employment!
+1000 ROTFLMFAO!
The "direct" bid. It's like the cavalry coming up the box canyon at the last moment! Now that we know, from the Maiden Lane reveal, that the Fed is quite willing to get "creative" about the limitations putatively placed upon it by the Federal Reserve Act (using SIVs to buy trash not backed up by the FF&C), how surprising would it be to learn that the Bernankster is using SIVs to prop up the auctions and calling it "Direct?" Reversing Shakespeare, to use directions to find indirections out. By the way, captcha is getting to the level of the Swiss roadside sobriety tests in the Steve Martin movie.
It's full employment. It's a ship and a submarine.
And it's going to end like the Titanic also. They have to tell the ban to keep playing, they have to tell the people that nothings wrong, and it's because the Titanic/American economy doesn't have enough life boats for everybody, not even close. So they con the people to ignore the problem and they slip out over the side of the ship in the very few remaining life rafts. The Titanic was unsinkable, America was unsinkable. The Titanic was the jewel of the ocean, America was the jewel of the world. But as with anything that puts it's faith in hubris and past glories, they fail to look at reality and to deal with that reality.
I think the only way that this mess can fix itself is to allow the financial system to totally break. When enough people have had their life work destroyed and their retirement disappeared, they will not want the same mistakes to happen again. Oh it will be tough, don't get me wrong. But during the decades of fixing this problem we will finally see the reality that we have been hiding with hubris and past glories.
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